Belly a Buy When U.S. 10-Year Yields 2.25%, Morgan Stanley Says

Treasuries investors should purchase five- to 10-year notes if the yield on the benchmark security rises to 2.25 percent in the first quarter, according to Morgan Stanley.

“If yields rise in line with near-term risks in the first quarter of 2013, we intend to change from a defensive stance to a positive stance on the Treasury market,” Matt Hornbach, head of U.S. interest-rate strategy, said in an interview yesterday at Morgan Stanley’s headquarters in New York. “We view this as an opportunity to adopt an overweight stance toward duration with a focus on the intermediate part of the curve.”